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GAP and NAKED GAP
open gaps
Gap Naked Gap
Gap Projection Method
Below is the comparison of what I call a
Naked Gap and a Classic Gap.
Naked Gap Up - When price opens at a price higher than the
price it closed at on the previous day and then closes above the previous day
close while never returning to yesterdays close.
Naked Gap Down - When price opens at a price lower than the price
it closed at on the previous day and then closes below the previous day close
while never returning to yesterdays close.
Classic Gap Up - When price opens at a price higher than high of
day the previous day. This remains a gap until price returns to high of day that
previous day.
Classic Gap Down - When price opens at a price lower than the low of
day on the previous day. This remains a gap until price returns to low of day of
that previous day.
Sometimes the Classic Gap gets filled and and
the naked gap does not fill.
Other times they both get filled. I prefer to keep my sights on
the Naked Gap.
After A Classic Gap is filled and the Naked Gap is not, I will maintain
a small bias for price to move in the direction to fill the Naked Gap.
Here is a Gap
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miracles,
they are everywhere.............. 
